Rupee inches down

The rupee edged slightly lower against the dollar in the interbank currency market on Tuesday, dealers said.

The local currency closed at 155.33 against the greenback, compared with the Monday’s closing of 155.30. In the open market, the rupee ended firmer at 155.60 to the dollar.

Dealers said the currency lost ground against the greenback due to an uptick in the demand for the US currency from importers.

“There is some month-end demand for the dollar, at the moment, which is expected to keep the currency under a little pressure for now,” a dealer said.

“However, dollar inflows in the form of remittances from overseas Pakistani workers are likely to keep the rupee stable,” he added. The rupee remains stable due to rise in the central bank’s foreign exchange reserves, amid higher portfolio inflows in government securities and surplus in the current account balance.

The foreign exchange reserves held by the State Bank of Pakistan rose $45 million to $8.442 billion as of November 15. The rupee has appreciated 5.6 percent since its low in June 2019.